ITV

Tag: set top boxes (STBs)

  • AMBC targets installation of additional 1.6 lakh STBs by Dec 2016

    AMBC targets installation of additional 1.6 lakh STBs by Dec 2016

    KOLKATA:  The West Bengal based multi-system operator (MSO), Advance Multisystem Broadband Communication (AMBC), is aiming to install 1.6 lakh set top boxes (STBs) by December 2016.

    AMBC claims to be the first private limited company in cable industry that is still run by a professional management team built by cable operators only. Launched in 2000, the company has more than 450 LCOs affiliated with it at present. AMBC in the Kolkata municipal area (KMA) claims to have more than 1.83 lakh digital connections.
     
    The company has one digital headend, which caters to the Kolkata municipal area and three analogue headends. The analogue headends at Arambag and Birbhum were to be converted into digital ones with the implementation of DAS in analogue areas. The company had earlier earmarked Rs 5 crore for converting the analogue headends into digital ones, but now the company has ‘withdrawn the signal’ from some non-potential areas.
     
    In the DAS areas, AMBC has seeded STBs in Hooghly, Howrah, Nadia, Salt Lake and North 24 Parganas among others, while in locations like Burdwan, Birbhum and parts of Bankura, it has more than 2.5 lakh analogue cable TV connections.
     
    “We were preparing to seed STBs in phase III and IV, and are encouraging the LCOs to do as much as they can, but RIO arrangement of SIPL is becoming a major drawback,” said AMBC managing director Sujit Das.
     
    Das informed that the company had already accounted for stock and trade interest rate due to postponement of digitisation deadlines when his company had taken loans to procure STBs’.
     
    “We are looking for some loops in KMA,” revealed Das. “Actually we are trying to saturate our core market with topmost priority. A set back after making a new venture in a new market may spoil our name and deflect our target,” he shared.
     
     Speaking about the challenges in cable TV digitisation, Das said, “As the market is still directed mostly by the LCOs, we need to have their confidence first, and then the job will become easier. A confused ground partner can be harmful for the operation. We need to work with cooperation with the LCOs, not with compulsion.”
     
     “Value chain is also a big factor. For the remaining phases we need to start by breaking even,” he said.  “Only a la carte channels offer will not be feasible enough as LCOs have to bear high cost to carry the channels.”
     
    Das feels that the experiment of digitisation will be over before the next phase starts and the market will be mature enough to work with. “So we may reduce our capex loss in seeding of STBs and operational cost as well. In phase 1and 2 we all were riding on the tiger’s back.”
     
    When being asked to comment on the phase III and phase IV of DAS, he said the locations where the company has analogue presence are price sensitive market and the monthly subscription fee hovers around Rs 100-Rs 110. “Keeping in mind the price sensitive market, we might do various permutations and combinations while providing the channel package to consumers in DAS 4 areas. A price hike in small towns and rural Bengal will slow down STBs seeding,” he added.
     
     
    Ground networking and channel placing are major factors for acceptance of a signal to the consumers. AMBC also works with the best channel sequence, which is reviewed from time to time depending upon the feedback from the ground, Das informed.
     
    AMBC says that it gets immense support from its LCOs’ to deliver quality service and technical support to meet consumer demands.

     

  • Chip maker Broadcom gets chirpy about India

    Chip maker Broadcom gets chirpy about India

    KOLKATA:  It’s got India on its mind.  Most Indian cable TV and DTH operators are pretty familiar with the  US-headquartered Broadcom Corp. The company provides the chips that go into the set top boxes and also for enterprise networking and mobile connectivity functions. What they probably don’t know is that it has invested more than 15 per cent of its global R&D budget in its Indian R&D centre. And that its Indian MD Rajiv Kapur is extremely gung-ho about the potential in India as its television ecosystem digitises. 

     

    And that’s despite the fact that there’s not been a flood of orders from those wanting to supply STBs to Indian  cable TV ops and MSOs.

     

    Says he:  “Right now activity is more on the technology front. The actual orders are expected to come before the end of the deadline (31 December 2014). And hence I can confidently say further growth will come. Even in the current situation, India’s revenue is being noticed from the global perspective.”

     

    Surely. With India’s transition from analog to digital television service, many consumers need new, full-featured set-top boxes (STBs) for home viewing. This represents a major opportunity for regional operators and set-top box manufacturers, as only a portion of the roughly 100 million STBs in consumers’ homes have already been digitised according to published government figures. Adding to this potential for set-top box growth is the trend of consumers adding more than one television to their home, as well as natural consumer upgrade cycles from standard definition to high definition, and so on.

     

    Meanwhile Kapur  points out that the company has invested -and is continuing to invest –  in India to develop complete solutions and also for support infrastructure.  “Our core competency is in chip making. But we have walked the extra mile by designing the complete hardware and software part. We have put many more features in the chip,” says Kapur.  

     

    Demand for those chips will come in the not to distant future. For  now, he says, “We see an immediate demand for standard definition STB “Zappers,” which are cost-effective and easy to deploy to new and current subscribers. In time, STBs with advanced features may either be imported or manufactured regionally due to their lower volume demand.”

     

    Endorsing his view is Vadodara-based VKJ Advisory CEO Vinod K Jhaveri who adds that Broadcom could and should take advantage of the current government’s stated policy to encourage indigenous production of chips in order to save the nation precious forex and make the silicon affordable. “Companies like Broadcom Corp have a great future as they can – in  the years to come – become a hub for Asia. They can use their  facilities to export  chips and semi conductors to countries like China and other Asian counterparts.”

  • Tony D’silva draws up wishlist for MIB

    Tony D’silva draws up wishlist for MIB

    MUMBAI: The Information and Broadcasting Minister (I&B) Prakash Javadekar wants a happy Media and Entertainment industry. And for the same, he has been meeting the members of the industry personally to understand their concerns and devise a way forward.

     

    The cable TV industry, which is currently undergoing digitisation, is looking up to the Minister for a better tomorrow. While digitisation of the 120 million cable TV homes in phase III and phase IV took a backseat with the general elections, so did the launch of the Headend in the Sky (HITS) by Grant Investrade, a 100 per cent subsidiary of Hinduja Ventures.

     

    Now with the Ministry throwing some clarity on the next two phases of digitisation, Hinduja group on Monday paid the Rs 10 crore licence fee to the Ministry to move things forward. But, this isn’t all, with this, the expectations from the Ministry has also risen.

     

    In a conversation with indiantelevision.com, IMCL MD & group CEO Tony D’silva lists down his wishlist from the new government and especially the I&B Minister.

     

    • The I&B must demonstrate its commitment to digitisation by immediately announcing the future dates of the remaining two phases.

     

    • According to me, unlike phase I and phase II of digitisation, the government should consider digitising not phases, but complete states. This will also avoid the confusion of neighbouring markets like Hyderabad / Secunderabad, Mumbai and suburbs, Delhi and surrounding markets as well as prevent piracy of signals.

     

    The advantage of doing state-wise digitisation is that if the whole state is involved, the state government can easily estimate its revenues and join forces to ensure implementation. (Similar method was followed in some other countries).

     

    • Broadcaster pricing needs to be worked out more meaningfully in states that are not yet digitised. From my understanding for most broadcasters, phase I and II contribute at least 75 per cent or more of their existing revenues that is from approximately 30 million homes. This means that the rest 25 per cent or so of their business comes from the 100 million- 120 million homes that fall in the next two phases. So when you look at the ratios, then what really should be the pricing of the broadcasters? Broadcaster pricing is the key to the success of digitisation in phase III and IV.

     

    • The broadcaster pricing has to be different. It has to be territory wise and therefore, digitising a complete state is more feasible. The MSOs, broadcasters and the TRAI can sit and discuss in an environment which is more transparent and also come up with pricing which is more viable for phase III and IV.

     

    •  The Hinduja group is committed to invest over $100 million, to set up its HITS business, which is a white label backend service provider to support the smaller operators and help them retain their business and livelihood (the industry employs a few million people), hence it’s important to support the LMO. The group has already invested a couple of crores on the project, but needs a confirmed date for digitisation, before its expense meter starts ticking (transponder payments etc).

     

    • While we do support the government’s effort to encourage indigenisation of set top boxes (STBs), the government should also ensure that it is offered at comparative or better terms than international suppliers (price, credit facilities, repairs, servicing etc). A roadmap for future high end STBs should also be provided.

     

    • One of the key players in the value chain is the LMO. Enough by way of regulation and processes has not been done for them as yet. This needs a complete relook in light of the present situation in phase I and II markets.

     

    • I believe that one of the key objectives of digitisation is consumer choice. Government must insist on the prepaid model along with packaging of channels from day one of digitisation in phase III and IV markets, or else we will face the same problems like the ones in phases I and II.

     

    • The LMO has been the backbone of the C&S industry. In view of this, the government must find a way to encourage them to grow their business. The current licencing policy is completely against the interest of a small LMO. I fail to understand why an operator who has existed for years in the market is asked to get a fresh licence from the centre?  I can’t understand if he is a pan India operator, who already has a licence and has a registered business and is even paying his taxes, then why should digitisation change his status?

     

    If he does not comply with the guidelines, action can be taken by the regulator or the market forces will anyway drive him out of business as there are alternatives to consumers like DTH etc. This needs some immediate intervention.

     

    • The industry is heavily burdened with huge investments due to digitisation. Investments have been made in headends, backend services and STBs, among other things. I earnestly request that the C&S business be given an industry status. Also a relief from double tax: service tax and entertainment tax is needed. Reduction in import duties is also a necessity as it directly affects the customer. Also the entertainment tax needs to come down. It should be a percentage of the package the customer chooses, rather than have one set rule for all the households.

     

    • Another issue is of TRAI’s current regulation on de-aggregation. While the regulation was supposed to help the MSOs, it has had an adverse effect. So, I would like to appeal to the broadcasters and the authorities to intervene and bring about the reasonable pricing model that facilitates business. The broadcasters need to take a long term view of how they can monetise the content, because the old theory of everyone wanting to be on the basic pack cannot work anymore.